Sensex Today | Nifty 50 | Stock Market Highlights: Benchmarks recover from sharp intraday fall as PSU banks offset IT slide

Indian equities reversed a deep morning selloff on Wednesday, 3 June, with the Sensex closing 304 points lower at 74,346.17 and the Nifty 50 ending 78 points down at 23,405.60, after reports of potential bond-market tax relief and ownership rule changes lifted sentiment from the day’s lows.

Market Overview

Index	3 Jun Close	Move & % Change	Comments
Sensex	74,346.17	-304 pts (-0.41%)	Recovered about 850 pts from intraday low near 73,492.
Nifty 50	23,405.60	-77.96 pts (-0.33%)	Rebounded from low around 23,151 after policy reform buzz.
Nifty Bank	approx. 53,100–53,700	down about 1% intraday	Hit near 53,027, later trimmed losses; trend still weak.
Nifty Midcap 100	not stated	down 0.40%	Underperformed large caps, stayed in the red.
Nifty Smallcap 100	not stated	down 0.16%	Marginal decline after recovering from deeper losses.
India VIX	16.32	+6%	Volatility stayed elevated after morning crash.

Note: figures are approximate; final exchange data not available at time of publication.

• Indices fell over 1% in early trade before staging a sharp afternoon recovery.
• Intraday, Sensex slipped more than 1,150 points and Nifty 50 over 300 points.
• Market cap erosion on BSE at the lows exceeded ₹3 lakh crore, per intraday figures.
• Volatility spiked as India VIX climbed to the 16–17 band.

Key Drivers

• US–Iran tensions escalated, with the US military reporting interception of Iranian missiles and drones in the Gulf.
• Brent crude traded near $97 per barrel, reviving concerns on India’s import bill and inflation.
• The rupee weakened to around 95.50–95.71 per dollar, staying near record lows.
• Foreign investors remained net sellers, offloading about ₹8,363 crore of equities on 2 June, as per exchange data.
• Reports indicated the government may cut taxes on foreign holdings of Indian bonds and remove some ownership caps, aiding the intraday rebound.
• Market focus stayed on the RBI’s policy decision on 5 June amid renewed inflation worries.

• “The mild escalation in the West Asia conflict has again pushed up Brent crude price to close to $97 indicating no respite to India from the energy shock. The RBI commentary and actions on June 5 will be keenly watched by the market.” — VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

Sectoral Action

Sector/Index	Direction (approx.)	Key Drivers
Nifty PSU Bank	up 1.7%	Buying in SBI and peers after morning selloff.
Nifty IT	down about 4–6%	Profit booking after recent rally; large caps fell up to 8%.
Nifty Bank	down about 1% intraday	Tracked broader risk-off; remained below key averages.
Healthcare / Pharma	down (exact % not stated)	Continued to lag after prior sessions’ weakness.
Oil & Gas	down (exact % not stated)	Pressure from higher crude and macro worries.

Note: figures are approximate; final exchange data not available at time of publication.

• All major sectors traded in the red at the lows before selective recovery.
• PSU banks outperformed, closing higher despite intraday volatility.
• Consumer durables, FMCG and autos had seen buying in the previous session but participation was muted on Wednesday.

Top Gainers and Losers

Top Gainers (large-cap focus)

Stock	Sector	Notable Factor
State Bank of India	PSU Bank	Rose about 1–2% on index buying in PSU banks.
ICICI Bank	Private Bank	Gained around 1–2% as financials led rebound.
Power Grid	Power	Advanced 1–2%, aiding Sensex recovery.
IndiGo (InterGlobe Aviation)	Aviation	Climbed 1–2% despite higher ATF, tracking stock-specific interest.

Note: figures are approximate; final exchange data not available at time of publication.

Top Losers (large-cap focus)

Stock	Sector	Notable Factor
TCS	IT Services	Slumped about 7–9% after recent AI-driven rally.
Tech Mahindra	IT Services	Fell around 5–6% on heavy profit booking.
HCL Technologies	IT Services	Declined about 3–5% after prior outperformance.
Infosys	IT Services	Dropped roughly 3–4% as Nifty IT turned weak.

Note: figures are approximate; final exchange data not available at time of publication.

• Nifty IT had gained over 6% in the previous three sessions before the reversal.
• Selling in heavyweight IT names exerted significant drag on both Sensex and Nifty.

Technical Outlook

Nifty 50

• Intraday low near 23,151; close at 23,406 signalled strong intraday buying.
• Immediate support zones cited between 23,160–23,180 and 23,270–23,250.
• Deeper support seen around 23,000, with further cushion near 22,800–22,960.
• Immediate resistance pegged at 23,410–23,430, then 23,530–23,550.
• A sustained move above 23,700–24,000 is viewed as necessary to resume an uptrend.

Sensex

• Support for day traders identified near 74,000–73,800.
• Resistance zones highlighted at 75,000–75,300.

Bank Nifty / Nifty Bank

• Touched an intraday low around 53,027, versus recent close near 53,700.
• Key support cited at 53,000–52,800, with a broader floor at 52,700–52,500.
• Resistance seen at 54,300–54,500, extending to 54,600–55,000.
• Analysts flagged a sideways to bearish bias unless the index reclaims the 20-day moving average near 54,300–54,600.

• “The index recovered smartly during the day but failed to reclaim the 20 EMA on the hourly chart, keeping the possibility of another decline alive.” — Rupak De, Senior Technical Analyst, LKP Securities.

Global Cues

Market/Asset	Movement	Notes
Brent crude oil	about +1.1%	Hovered near $97.08 a barrel on Middle East tensions.
WTI crude oil	about +1.2%	Traded close to $94.92 a barrel.
US equities (Dow)	+0.45%	Closed higher despite geopolitical worries.
Japan Nikkei 225	+2.17%	Hit a record high, tracking tech strength.
US 10-year yield	up to ~4.46%	Higher yields kept risk sentiment cautious.
US 30-year yield	up to ~4.97%	Firm yields supported dollar assets.

Note: figures are approximate; final market data not available at time of publication.

• Asian markets traded mixed, with Japan rallying and Hong Kong futures indicating a weaker open.
• The dollar index stayed near 99.2, while the yen hovered just below 160 per dollar.
• Strong US job openings data reinforced expectations of higher-for-longer US rates.

Key Market Statistics

Statistic	Value/Change	Context
FII equity flows (2 Jun)	-₹8,363 crore	Continued foreign selling weighed on sentiment.
India VIX	16.32, up 6%	Signalled elevated near-term volatility.
Rupee close (3 Jun)	95.71 per dollar, -35 paise	Stayed near record lows amid crude spike and outflows.
NSE advance/decline	1,379 up / 1,955 down / 108 unchanged	Breadth remained negative despite late recovery.

Note: figures are approximate; final exchange data not available at time of publication.

• Persistent FII outflows and a weaker rupee kept macro risks in focus.
• Domestic flows and value buying at lower levels helped limit closing losses.

FAQs